Gold prices hit record high with a dramatic surge
Spot gold (XAU/USD) reached a new all-time high of $2,555.11 on Thursday, driven by monetary policy announcements from the European Central Bank (ECB) and economic data from the U.S. The ECB cut its deposit rate by 25 basis points to 3.5%, while also lowering the main refinancing rate and marginal lending facility. Additionally, the U.S. reported a Producer Price Index (PPI) increase of 1.7% in August year-over-year, below market expectations.
Rate cut came as no surprise
The ECB’s decision to lower rates was anticipated, but it still fueled the rise in gold prices. At the same time, U.S. PPI data has bolstered expectations that the Federal Reserve may lower interest rates soon. Investors are closely monitoring the market, particularly as a weakening U.S. dollar makes gold an appealing investment.
XAU/USD technical analysis
Gold’s technical chart continues to show an upward trend. The 20-day simple moving average (SMA) is providing solid support for gold prices, with the relative strength index (RSI) nearing overbought levels. This suggests that gold prices are likely to continue rising in the short term. Current support stands at $2,535.10, with key resistance levels at $2,555.10, $2,570.00, and $2,585.00.
Gold price forecast
Based on current technical and economic factors, XAU/USD is expected to maintain its upward momentum. While minor corrections may occur, gold will likely find strong support from investors and could reach higher resistance levels. In the coming weeks, keeping an eye on economic developments and Fed policy will be crucial for determining gold’s price trajectory.
Conclusion
Gold prices are experiencing a powerful upward surge and are likely to continue rising in the near future. With global economic conditions and monetary policies still uncertain, gold remains a safe investment choice for investors. If you are looking for a stable investment opportunity, now could be an ideal time to capitalize on the market trend and seize the opportunity with gold.
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